Biden defended his decision to preserve access to Russian energy in order “to limit the pain the American people are feeling at the gas pump.” But some analysts say that excluding that industry limits the sanctions and could embolden Putin.
There is a glaring carve-out in President Joe Biden’s sanctions against Russia: Oil and natural gas from that country will continue to flow freely to the rest of the world and money will keep flowing into Russia.
As part of a broader international push, Biden announced sanctions on Thursday that target Russian banks and the country’s elites, and restrict the export of vital technologies that are key for the military and economic development. The U.S. and its European allies intensified the sanctions on Saturday by announcing plans to freeze the reserves of Russia’s central bank and block certain financial institutions from the SWIFT messaging system for international payments.
Inflation, at a 40-year peak and fueled in large part by gas prices, has hurt Biden politically with voters heading into the November elections. “The administration is intentionally leaving the biggest industry in Russia’s economy virtually untouched,” Toomey said. “The sanctions imposed on Russian banks, while welcome, may not isolate the Russian financial system from international activity. That’s why the U.S. should impose crippling sanctions on Russia’s oil and gas sector.”
Should there be a loss of oil and natural gas from Russia, the U.S. appears unable to quickly increase production of oil and natural gas, while OPEC-plus countries have yet to publicly commit to substantially more production.
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